Orkla India IPO Subscription Opens On Wednesday: Price Band To GMP— Here's All You Need To Know

Orkla India Ltd., the owner of spices and condiments brands MTR and Eastern, will launch its initial public offering this week. The IPO will open for subscription on Wednesday, Oct. 29 and close on Friday, Oct. 31. It consists of only an offer for sale of shares. Promoter Orkla Asia Pacific, along with public shareholder Navas Meeran and Feroz Meeran, will partciptate in the OFS.

Since it is an OFS, the company will not receive any proceeds from the IPO, and the entire amount of money will go to the selling shareholders. The company will seek investments from large institutions via the anchor round on Tuesday, Oct. 28.

ICICI Securities Ltd., Citigroup Global Markets India Pvt., J.P. Morgan India Pvt., and Kotak Mahindra Capital Co. are the lead book running managers to the IPO.

• Dates: Oct. 29-31

• Price Band: Rs 695-730 per share

• Lot Size: 20 per lot

• Issue size: Offer for sale of 2.28 crore shares worth up to Rs 1,668 crore

• Indicated Market Cap: Rs 10,000 crore

• Date of allotment: Nov. 3

• Credit To Demat: Nov. 4

• Listing Date: Nov. 6

Orkla India is a multi-category food company deeply rooted in the South Indian culinary. It manufactures products such as spices and masalas, ready-to-eat sweets, and breakfast mixes under prominent brands such as MTR, Rasoi Magic, and Eastern and has a portfolio of over 400 products across these categories.

As of March 31, 2025, the company's network comprised 843 distributors and 1,800 sub-distributors across 28 states and five union territories.

The Bengaluru-headquartered company is a subsidiary of Orkla ASA, a Norway-listed industrial, long-term investment company focused on brands and consumer-oriented companies. Orkla entered India in 2007 by buying MTR Foods, and followed up the acquisition of Kerala-based spice maker Eastern Condiments in 2012.

The promoter will received Rs 1,500 crore from the IPO.

Revenue from operations rose 6% year-on-year to Rs 597 crore in the June quarter, as per the offer documents. Net profit came in at Rs 79 crore compared to Rs 72 crore in the year-ago period.

On the operating side, margin expanded by 50 basis points to 18.7%. Adjusted Ebitda rose to Rs 117 crore from Rs 102 crore.

In the fiscal 2025, revenue was Rs 2,394 crore and the profit stood at Rs 256 crore.

Margin has improved from 14.4% in FY23 to 14.6% in FY24 to 16.6% in FY25.

Orkla India exported products to 45 countries, with a focus on geographies such as the Gulf Cooperation Council countries, the US and Canada where the Indian diaspora is a lucrative market. The share of outbound shipments contributed to 20% of total revenue.

Orkla India has disclosed the following risks in its offer documents:

• Raw and packaging materials made up 57% of total expenses in FY25, and any adverse fluctuations in their prices or availability could impact profitability.

• Exports made up 20% of FY25 sales. Regulatory or operational issues in export destinations could affect growth.

• Product contamination or improper storage could lead to regulatory action, reputational damage, and financial loss.

• Dependence on key suppliers for raw materials may lead to supply disruptions or price volatility, affecting operations and profitability.

• Inability to scale or manage distribution and adapt to channel shifts may impact sales and profitability.

• Payment delays or defaults by distributors or retailers may hurt cash flows and reduce profits.

According to InvestorGain, the latest GMP for the Orkla India IPO stood at Rs 110 as of 1:30 p.m. on Monday. With an upper price band of Rs 730 per share, the estimated listing price is likely to be Rs 840, as per the latest GMP. This implies an expected listing gain of 15% per share.

Note: GMP does not represent official data and is based on speculation.